bushfire insurance claims update, and 1h20 financial reporting and comparatives · 2020. 1. 30. ·...

1 Commonwealth Bank of Australia | Media Release 016/2020 | ACN 123 123 124 Ground Floor Tower 1, 201 Sussex Street, Sydney NSW 2000

ASX announcement

Bushfire insurance claims update, and 1H20 financial reporting and comparatives

Friday 31 January 2020 (Sydney): Commonwealth Bank of Australia (CBA) today provides an update on insurance

claims related to the bushfires, and changes to financial reporting and 1H20 financial comparatives (refer to

Attachment A for detailed comparative tables).

1. Insurance claims from customers affected by the bushfires

CBA has recognised a provision of $83 million for the half year ended 31 December 2019 for insurance claims from

customers affected by the recent bushfires in Australia.

2. Changes to financial reporting arising from the simplification of CBA’soperating model

In line with CBA’s continued commitment to becoming a simpler, better bank, changes to CBA’s operating model have

been made during the current half. These changes have not impacted CBA’s cash net profit after tax (NPAT), but result

in changes to the presentation of the Divisional Income Statements and Balance Sheets of the affected divisions (Refer

to pages 2 – 6). They key changes are:

Following the transfer of the small business banking segment out of Retail Banking Services division to the

Business and Private Banking division, in order to consolidate CBA’s business banking in 1H19, we have

continued to enhance the classification of our business banking portfolios resulting in some customers being

transferred from Retail Banking Services to Business and Private Banking, and Institutional Banking and

Markets.

Other re-segmentations and allocations, including refinements to the allocation of support unit and other costs.

3. Interim results announcement

Commonwealth Bank of Australia (CBA) is scheduled to announce its Interim results on 12 February 2020. A results

briefing will be hosted by the Chief Executive Officer, Matt Comyn, and Chief Financial Officer, Alan Docherty, at

11:00am (Australian Eastern Daylight Savings Time) on 12 February 2020. This briefing will be available via webcast

on the Commonwealth Bank Investor Centre (www.commbank.com.au/investors).

Contact Details

Danny John Media Relations 02 9118 6919 [email protected]

Melanie Kirk Investor Relations 02 9118 7113 [email protected]

The release of this announcement was authorised by the Continuous Disclosure Committee.

http://www.commbank.com.au/investors

mailto:[email protected]

mailto:[email protected]

Attachment A


 

Impact of Current Half Financial Reporting changes on the Prior Periods

Divisional cash NPAT from continuing operations

The impact of the following changes is presented below:

Business banking portfolio transfers

Other re-segmentation and allocations

Retail Business Institutional International

Banking and Private Banking and Wealth New Financial

Services Banking Markets Management Zealand Services Other Group$M $M $M $M $M $M $M $M

Cash NPAT (continuing operations) - as published 2,035 1,251 491 24 511 109 (605) 3,816

Restatements:

Business banking portfolio transfer (140) 132 8 - - - - -

Other re-segmentation and allocations (22) 3 16 2 4 11 (14) -

Total restatements (162) 135 24 2 4 11 (14) -

Cash NPAT (continuing operations) - as restated 1,873 1,386 515 26 515 120 (619) 3,816



Services Banking Markets Management Zealand Services Other Group

$M $M $M $M $M $M $M $M


Restatements:

Business banking portfolio transfer (146) 138 8 - - - - -

Other re-segmentation and allocations (15) - 14 2 5 12 (18) -



Half Year Ended 30 June 2019

Half Year Ended 31 December 2018

Attachment A


 

Divisional cash NPAT from continuing operations by Income Statement line items







$M $M $M $M $M $M $M $M


Restatements:

Increase/(decrease) in Income (323) 296 18 - 6 16 (13) -

Increase/(decrease) in Investment experience (before tax) 2 - - 2 - - (4) -

(Increase)/decrease in Operating expenses 81 (96) 14 (1) - 1 1 -

(Increase)/decrease in Loan impairment expense 8 (8) - - - - - -

(Increase)/decrease in Corporate tax expense 70 (57) (8) 1 (2) (6) 2 -






$M $M $M $M $M $M $M $M


Restatements:

Increase/(decrease) in Income (337) 310 18 - 7 17 (15) -

Increase/(decrease) in Investment experience (before tax) 3 - - 5 - - (8) -

(Increase)/decrease in Operating expenses 89 (99) 15 (3) - - (2) -

(Increase)/decrease in Loan impairment expense 13 (14) - - - - 1 -

(Increase)/decrease in Corporate tax expense 71 (59) (11) - (2) (5) 6 -





Attachment A


 

Divisional Balance Sheet




Retail Business Institutional

Banking and Private Banking and Wealth New

Services Banking Markets Management Zealand IFS & Other Group

$M $M $M $M $M $M $M

Total Assets - as published 412,608 174,852 148,197 21,093 94,320 125,432 976,502

Restatements

Business banking portfolio transfer (22,030) 22,030 - - - - -

Other re-segmentation and allocations 5 165 (170) - - - -

Total restatements (22,025) 22,195 (170) - - - -

Total Assets - as restated 390,583 197,047 148,027 21,093 94,320 125,432 976,502

Total Liabilities - as published 273,603 140,541 150,209 25,297 88,466 228,737 906,853

Restatements

Business banking portfolio transfer (26,886) 18,645 8,241 - - - -

Other re-segmentation and allocations 954 (129) 129 (955) - 1 -

Total restatements (25,932) 18,516 8,370 (955) - 1 -

-

Total Liabilities - as restated 247,671 159,057 158,579 24,342 88,466 228,738 906,853

Retail Business Institutional

Banking and Private Banking and Wealth New

Services Banking Markets Management Zealand IFS & Other Group

$M $M $M $M $M $M $M

Total Assets - as published 404,551 172,831 160,528 19,442 92,434 130,644 980,430

Restatements

Business banking portfolio transfer (21,736) 21,736 - - - - -

Other re-segmentation and allocations (43) 188 (164) - - 19 -

Total restatements (21,779) 21,924 (164) - - 19 -

-

Total Assets - as restated 382,772 194,755 160,364 19,442 92,434 130,663 980,430

Total Liabilities - as published 276,172 137,755 149,277 23,781 85,890 238,977 911,852

Restatements

Business banking portfolio transfer (31,697) 22,842 8,855 - - - -

Other re-segmentation and allocations 1,023 19 (19) (1,024) - 1 -

Total restatements (30,674) 22,861 8,836 (1,024) - 1 -

-

Total Liabilities - as restated 245,498 160,616 158,113 22,757 85,890 238,978 911,852

As at 30 June 2019

As at 31 December 2018

Attachment A


 

Divisional Cost to Income Ratios from continuing operations




(1) Excludes Mortgage Broking and General Insurance.



Banking and Private Banking and Wealth New Zealand Financial

Services (1) Banking Markets Management (in NZD) Services Group

% % % % % % %

Operating expenses to total

operating income (continuing

operations) (%) - as published

39. 4 39. 0 46. 4 93. 8 37. 7 33. 0 49. 8



operations) (%) - as restated 40. 3 38. 5 44. 5 94. 1 37. 5 30. 1 49. 8



Banking and Private Banking and Wealth New Zealand Financial

Services (1) Banking Markets Management (in NZD) Services Group

% % % % % % %



operations) (%) - as published

37. 6 34. 3 39. 4 56. 7 36. 0 37. 9 42. 6



operations) (%) - as restated 38. 2 34. 1 37. 7 57. 4 35. 7 35. 3 42. 6


Attachment A


 

Consolidated Balance Sheet


Consolidation of Bank acceptances balances due to materiality

Indicates key changes

As Restated As Published As Restated As Published

Assets $M $M $M $M

Cash and liquid assets 29,387 29,387 37,220 37,220

Receivables due from other f inancial institutions 8,093 8,093 7,744 7,744

Assets at fair value through Income Statement:

Trading 32,506 32,506 33,615 33,615

Other 1,171 1,171 1,029 1,029

Derivative assets 25,215 25,215 28,569 28,569

Investment securities:

At amortised cost 7,355 7,355 6,990 6,990

At fair value through Other Comprehensive 78,912 78,912 75,246 75,246

Loans, bills discounted and other receivables 755,173 755,141 753,560 753,507

Bank acceptances of customers - 32 - 53

Property, plant and equipment 2,383 2,383 2,417 2,417

Investment in associates and joint ventures 3,001 3,001 2,831 2,831

Intangible assets 7,965 7,965 8,161 8,161

Deferred tax assets 1,675 1,675 1,735 1,735

Other assets 7,115 7,115 6,097 6,097

Assets held for sale 16,551 16,551 15,216 15,216

Total assets 976,502 976,502 980,430 980,430

Liabilities

Deposits and other public borrow ings 636,040 636,040 637,010 637,010

Payables due to other f inancial institutions 23,370 23,370 22,545 22,545

Liabilities at fair value through Income 8,520 8,520 9,030 9,030

Derivative liabilities 22,777 22,777 26,305 26,305

Bank acceptances - 32 - 53

Current tax liabilities 326 326 401 401

Other provisions 2,751 2,751 2,196 2,196

Debt issues 164,022 163,990 168,904 168,851

Bills payable and other liabilities 10,285 10,285 8,280 8,280

Liabilities held for sale 15,796 15,796 14,350 14,350

883,887 883,887 889,021 889,021

Loan capital 22,966 22,966 22,831 22,831

Total liabilities 906,853 906,853 911,852 911,852

Net assets 69,649 69,649 68,578 68,578

Shareholders' Equity

Ordinary share capital 38,020 38,020 38,015 38,015

Reserves 3,092 3,092 2,051 2,051

Retained profits 28,482 28,482 27,959 27,959

Shareholders' Equity attributable to Equity

holders of the Bank 69,594 69,594 68,025 68,025

Non-controlling interests 55 55 553 553

Total Shareholders' Equity 69,649 69,649 68,578 68,578

As at 30 Jun 19 As at 31 Dec 18

Attachment A


 

Updated Financial Comparative Tables for the 2020 Interim Profit Announcement

Group Performance Summary

31 Dec 19 30 Jun 19 31 Dec 18

$M $M $M

Net interest income - 8,986 9,134

Other banking income - 2,432 2,636

Total banking income - 11,418 11,770

Funds management income - 502 570

Insurance income - 79 68

Total operating income - 11,999 12,408

Investment experience - 1 3

Total income - 12,000 12,411

Operating expenses - (5,980) (5,289)

Loan impairment expense - (624) (577)

Net profit before tax - 5,396 6,545

Corporate tax expense - (1,574) (1,863)

Non-controlling interests - (6) (6)

Net profit after tax from continuing operations - 3,816 4,676

Net profit after tax from discontinued operations - 122 92

Net profit after tax - 3,938 4,768

Gain/(Loss) on acquisition, disposal, closure and demerger of businesses - 13 (74)

Hedging and IFRS volatility - 12 (91)

Other non-cash items - 9 (4)

Net profit after tax ("statutory basis") - 3,972 4,599

Cash net profit after tax, by division

Retail Banking Services (excl. Mortgage Broking and General Insurance) - 1,860 2,052

Mortgage Broking and General Insurance - 13 19

Retail Banking Services 1,873 2,071

Business and Private Banking - 1,386 1,545

Institutional Banking and Markets - 515 602

Wealth Management - 26 138

New Zealand - 515 544

International Financial Services - 120 130

Corporate Centre - (619) (354)

Net profit after tax from continuing operations ("cash basis") - 3,816 4,676

Half Year Ended ("cash basis")

Attachment A


 

Key Performance Indicators

Key Performance Indicators 31 Dec 19 30 Jun 19 31 Dec 18

Group Performance from continuing operations

Statutory net profit after tax ($M) - 3,785 4,575

Cash net profit after tax ($M) - 3,816 4,676

Net interest margin (%) - 2.10 2. 10

Operating expenses to total operating income (%) - 49.8 42. 6

Spot number of full-time equivalent staff (FTE) - 42,921 42,519

Average Number of FTE - 42,979 42,570

Effective corporate tax rate ("cash basis") (%) - 29. 2 28.5

Profit after capital charge (PACC) ($M) - 1,704 2,660

Average interest earning assets ($M) - 864,692 863,664

Average interest bearing liabilities ($M) - 757,518 764,654

Funds Under Administration (FUA) - average ($M) - 164,129 160,860

Assets Under Management (AUM) - average ($M) - 15,156 13,887

Group Performance including discontinued operations

Statutory net profit after tax ($M) - 3,972 4,599


Net interest margin (%) - 2.10 2.11

Operating expenses to total operating income (%) - 51.3 44.4

Spot number of full-time equivalent staff (FTE) - 45,165 44,870

Average Number of FTE - 45,234 45,211

Effective corporate tax rate ("cash basis") (%) - 29.0 28.4

Profit after capital charge (PACC) ($M) - 1,686 2,647


Average interest bearing liabilities ($M) - 758,705 765,527

Funds Under Administration (FUA) - average ($M) - 174,291 171,322

Assets Under Management (AUM) - average ($M) - 225,788 218,227

Average inforce premiums ($M) - 2,282 2,445

Half Year Ended

Attachment A


 


31 Dec 19 30 Jun 19 31 Dec 18

Shareholder Returns from continuing operations

Earnings Per Share (EPS) (cents)

Statutory basis - basic - 214. 1 259. 6

Cash basis - basic - 215. 7 265. 2

Return on equity (ROE) (%)

Statutory basis - 11. 1 13. 5

Cash basis - 11. 2 13. 8

Shareholder Returns including discontinued operations

Earnings Per Share (EPS) (cents)

Statutory basis - basic - 224. 7 261. 0

Cash basis - basic - 222. 6 270. 4

Return on equity (ROE) (%)


Cash basis - 11. 5 14. 1

Dividends per share - fully franked (cents) - 231 200

Dividend cover - "cash basis" (times) - 1. 0 1. 3

Dividend payout ratio (%)


Cash basis - 103. 8 74. 3

Capital (Basel III) including discontinued operations

Common Equity Tier 1 (Internationally Comparable) (%) - 16. 2 16. 5

Common Equity Tier 1 (APRA) (%) - 10. 7 10. 8

Risk w eighted assets (RWA) ($M) - Basel III - 452,762 445,144

Leverage Ratio (Basel III) including discontinued

operations

Leverage Ratio (Internationally Comparable) (%) - 6. 5 6. 4

Leverage Ratio (APRA) (%) - 5. 6 5. 6

Liquidity Metrics including discontinued operations

Liquidity Coverage Ratio (%) - 132 131

Weighted Average Maturity of Long Term Debt (years) - 5. 1 5. 0

Customer Deposit Funding Ratio - 69 69

Net Stable Funding Ratio (%) - 112 112

Credit Quality Metrics including discontinued

operations

Loan impairment expense ("cash basis") annualised as a %

of average GLAAs- 0. 17 0. 15

Gross impaired assets as a % of GLAAs - 0. 48 0. 47

Credit risk w eighted assets (RWA) ($M) - Basel III - 372,574 369,356

Half Year Ended

Attachment A


 



(2) Net of average mortgage offset balances.

(3) Presented on a “cash basis”.

(4) Includes Mortgage Broking and General Insurance.

(5) Presented on a continuing operations basis.

(6) Risk weighted assets represent ASB only and are calculated in accordance with APRA requirements.

(7) Key financial metrics represent ASB only and are calculated in New Zealand dollar terms.

31 Dec 19 30 Jun 19 31 Dec 18

Retail Banking Services (1)


Net interest margin (%) - 2. 54 2. 57

Average interest earning assets (AIEA) ($M) (2) - 345,468 339,794

Operating expenses to total operating income (%) (3) - 40. 3 38. 2

Risk Weighted assets ($M) (4) - 162,777 155,977

Business and Private Banking



Average interest earning assets (AIEA) ($M) (2) - 182,243 185,554

Operating expenses to total banking income (%) (3) - 38. 5 34. 1

Risk Weighted assets ($M) - 138,753 133,185

Institutional Banking and Markets

Cash net profit after tax ($M) - 515 602


Average interest earning assets (AIEA) ($M) - 127,354 133,448

Operating expenses to total banking income (%) (3) - 44. 5 37. 7

Risk Weighted assets ($M) - 85,951 89,189

Wealth Management (5)


Operating expenses to total operating income (%) (3) - 94. 1 57. 4

FUA - average ($M) - 149,671 146,971

New Zealand (5)


Risk Weighted assets ($M) (6) - 51,186 50,147

Net interest margin (ASB) (%) (7) - 2.23 2.23

Average interest earning assets (AIEA) (ASB) (NZ$M) (7) - 96,385 94,262

Operating expenses to total operating income (ASB) (%) (3) (7) - 36. 2 34. 5

FUA - average (ASB) (NZ$M) (7) - 15,192 15,007

AUM - average (ASB) (NZ$M) (7) - 15,924 15,001

Half Year Ended

Attachment A


 

Retail Banking Services

31 Dec 19 30 Jun 19 31 Dec 18

$M $M $M


Other banking income - 692 758



Insurance Income - - -

Total Operating Income - 5,065 5,235



Net Profit before tax - 2,659 2,929

Corporate tax expense - (803) (878)

Underlying net profit after tax - 1,856 2,051

Investment experience after tax - 4 1

Cash net profit after tax - 1,860 2,052

Cash net profit after tax from Mortgage Broking and General

Insurance- 13 19

Total Cash net profit after tax - 1,873 2,071

Half Year Ended

Retail Banking (Excl. Mortgage

Broking and General Insurance)

Attachment A


 


(1) Consumer finance and other includes personal loans, credit cards and business lending.

(2) Consumer finance includes personal loans and credit cards.

(3) Distribution includes income associated with the sale of foreign exchange products and wealth products. Other includes asset finance, merchants

and business lending.

31 Dec 19 30 Jun 19 31 Dec 18

Income analysis $M $M $M

Net interest income

Home loans - 2,141 2,094

Consumer f inance & Other (1) - 790 845

Deposits - 1,417 1,467

Total net interest income - 4,348 4,406

Other banking income

Home loans - 126 135

Consumer f inance (2) - 244 261

Deposits - 216 215

Distribution & Other (3) - 106 147

Total other banking income - 692 758


Half Year Ended

Retail Banking (Excl. Mortgage

Broking and General Insurance)

Attachment A


 


(1) Home loans are presented gross of mortgage offset balances (30 June 2019: $34,455 million; 31 December 2018: $34,282 million). These balances

are required to be grossed up under accounting standards but are netted down for the calculation of customer interest payments.

(2) Consumer finance includes personal loans and credit cards.

(3) Transaction and Savings deposits include mortgage offset balances (30 June 2019: $34,455 million; 31 December 2018: $34,282 million).

(4) Average interest earning assets are presented net of mortgage offset balances, which reduce customer interest payments. Net average interest

earning assets are also used in the calculation of divisional net interest margin.

(5) Includes Mortgage Broking and General Insurance.

31 Dec 19 30 Jun 19 31 Dec 18

Balance Sheet (Excl. Mortgage Broking and General

Insurance)

$M $M $M

Home loans (1) - 369,236 361,079

Consumer f inance (2) - 14,780 15,272

Other interest earning assets - 433 725

Total interest earning assets - 384,449 377,076

Other assets - 4,165 3,630

Total assets - 388,614 380,706

Transaction deposits (3) - 32,252 31,100

Savings deposits (3) - 106,957 106,929

Investment deposits and other - 79,594 79,429

Total interest bearing deposits - 218,803 217,458

Non-interest bearing transaction deposits - 23,940 23,256

Other non-interest bearing liabilities - 3,916 3,676

Total liabilities - 246,659 244,390

Key Financial Metrics (Excl. Mortgage Broking and General

Insurance) 31 Dec 19 30 Jun 19 31 Dec 18

Performance indicators


Return on assets (%) - 1. 0 1. 1

Operating expenses to total operating income (%) - 40. 3 38. 2

Impairment expense annualised as a % of average

GLAAs (%)- 0. 19 0. 16

Other information

Average interest earning assets ($M) (4) - 345,468 339,794

Risk Weighted Assets ($M) (5) 162,777 155,977

90+ days home loan arrears (%) - 0. 73 0. 72

90+ days consumer f inance arrears (%) - 1. 29 1. 21

Number of full-time equivalent staff (FTE) - 14,866 14,790

Half Year Ended

As at

Attachment A


 


31 Dec 19 30 Jun 19 31 Dec 18

$M $M $M






Net profit before tax - 1,983 2,208


Cash net profit after tax - 1,386 1,545

Income analysis

Net interest income

Small Business Banking - 1,185 1,209

Business and Corporate Banking - 964 995

Regional and Agribusiness - 390 393

Private Bank - 159 169

CommSec - 97 94

Total net interest income - 2,795 2,860


Small Business Banking - 244 249

Business and Corporate Banking - 286 292

Regional and Agribusiness - 71 73

Private Bank - 28 32

CommSec - 129 120



Income by product

Business products - 2,135 2,183

Retail products - 1,220 1,248

Equities and Margin Lending - 173 164

Other - 25 31


Half Year Ended

Attachment A


 


(1) Home loans are presented gross of mortgage offset balances (30 June 2019: $10,623 million; 31 December 2018: $11,393 million). These

balances are required to be grossed up under accounting standards, but are netted down for the calculation of customer interest payments.

(2) Business loans include Cash Management Pooling Facilities (CMPF) (30 June 2019: $339 million; 31 December 2018: $357 million).

Transaction Deposits include CMPF liabilities (30 June 2019: $947 million; 31 December 2018: $835 million). These balances are required

to be grossed up under accounting standards, but are netted for the calculation of customer interest and risk weighted assets.

(3) Other assets include intangible assets.

(4) Transaction and Savings deposits includes mortgage offset balances (30 June 2019: $10,623 million; 31 December 2018: $11,393 million).

(5) Average interest earning assets are presented net of mortgage offset balances, which reduce customer interest payments. Net average

interest earning assets are also used in the calculation of divisional net interest margin.

(6) Commercial troublesome and impaired assets only. Includes commercial and leasing products.

31 Dec 19 30 Jun 19 31 Dec 18

Balance Sheet $M $M $M

Home loans (1) - 98,568 98,388

Business loans (2) - 91,641 89,713

Margin loans - 2,559 2,722

Consumer f inance - 2,600 2,659

Total interest earning assets - 195,368 193,482

Non-lending interest earning assets - 92 88

Other assets (3) - 1,587 1,185

Total assets - 197,047 194,755

Transaction deposits (2) (4) - 30,676 30,888

Savings deposits (4) - 55,033 53,343

Investment deposits and other - 47,847 51,569


Debt Issues and Other - 32 36

Non-interest bearing transaction deposits - 23,867 23,568



Key Financial Metrics 31 Dec 19 30 Jun 19 31 Dec 18




Operating expenses to total banking income (%) - 38. 5 34. 1

Impairment expense annualised as a % of average GLAAs (%) - 0. 21 0. 19

Other information

Average interest earning assets ($M) (5) - 182,243 182,554

Risk Weighted Assets ($M) - 138,753 133,185

Toublesome and impaired assets($M) (6) - 4,437 3,525


As at

Half Year Ended

Attachment A


 


(1) Derivative valuation adjustments include both net interest income and other banking income adjustments.

31 Dec 19 30 Jun 19 31 Dec 18

$M $M $M

Net interest income - 667 746



Operating expenses - (515) (499)

Loan impairment benefit/(expense) - 21 (38)

Net profit before tax - 663 786


Cash net profit after tax - 515 602

Income analysis

Net interest income

Institutional Banking - 624 663

Markets - 43 83

Total net interest income - 667 746


Institutional Banking - 234 273

Markets - 256 304



Income by product

Institutional products - 768 827

Asset leasing - 90 109

Markets (excluding derivative valuation adjustments) - 360 372

Total banking income excluding derivative valuation adjustments - 1,218 1,308

Derivative valuation adjustments (1) - (61) 15


Half Year Ended

Attachment A


 


(1) Interest earning lending assets include Cash Management Pooling Facilities (CMPF) (30 June 2019: $22,822 million, December

2018: $23,016 million). Transaction Deposits include CMPF liabilities (30 June 2019: $31,182 million; 31 December 2018: $29,431 million). These

balances are required to be grossed up under accounting standards, but are netted for the calculation of customer interest and risk weighted assets.

(2) Other assets include Intangible assets and Derivative assets. Non-interest bearing liabilities include Derivative liabilities.

(3) Debt issues and other includes Bank acceptances and Liabilities at fair value.

31 Dec 19 30 Jun 19 31 Dec 18

Balance Sheet $M $M $M

Interest earning lending assets (1) - 91,859 102,180

Non-lending interest earning assets - 30,243 30,737

Other assets (2) - 25,925 27,447

Total assets - 148,027 160,364

Transaction deposits (1) - 52,315 49,346

Savings deposits - 6,581 5,129

Investment deposits - 42,424 48,045

Certif icates of deposit and other - 16,132 14,574


Due to other f inancial institutions - 14,964 13,247

Debt issues and other (3) - 7,850 8,737

Non-interest bearing liabilities (2) - 18,313 19,035


Key Financial Metrics 31 Dec 19 30 Jun 19 31 Dec 18




Operating expenses to total banking income (%) - 44. 5 37. 7

Impairment expense annualised as a % of average GLAAs (%) - (0.04) 0.07

Other information


Risk Weighted Assets ($M) - 85,951 89,189

Toublesome and impaired assets($M) - 748 952

Total committed exposures rated investment

grade (%) - 87. 2 86. 8


As at

Half Year Ended

Attachment A


 

Wealth Management

(1) FUA includes Commonwealth Bank Group Super.

(2) Risk weighted assets include discontinued operations.

31 Dec 19 30 Jun 19 31 Dec 18

$M $M $M





Underlying profit after tax - 17 129


Cash net profit after tax from continuing operations - 26 138

Cash net profit after tax from discontinued operations - 126 127


31 Dec 19 30 Jun 19 31 Dec 18


Continuing operations


FUA - average ($M) (1) - 149,671 146,971

FUA - spot ($M) (1) - 155,468 141,925

Risk w eighted assets ($M) (2) - 4,704 3,706


Discontinued operations

AUM - average ($M) - 215,250 210,939

AUM - spot ($M) - 223,227 204,195

FUA - average ($M) - 10,161 10,462

FUA - spot ($M) - 10,251 9,993

Inforce Premiums - average ($M) - 1,207 1,280

Inforce Premiums - spot ($M) - 1,151 1,264


Half Year Ended

Key Financial Metrics

Half Year Ended

Attachment A


 

Wealth Management

Wealth Management Discontinued Operations

(1) Incorporates the results of Colonial First State, and the Aligned Advice businesses of Financial Wisdom, Count Financial and CFP Pathways. (2) CommInsure’s life business includes life insurance and life related investments business.

31 Dec 19 30 Jun 19 31 Dec 18 31 Dec 19 30 Jun 19 31 Dec 18 31 Dec 19 30 Jun 19 31 Dec 18

$M $M $M $M $M $M $M $M $M

Funds management income - 421 441 - 454 433 - 53 47

Insurance income - - - - - - - 2 72

Total operating income - 421 441 - 454 433 - 55 119

Operating expenses - (396) (253) - (301) (296) - (126) (130)

Net profit before tax - 25 188 - 153 137 - (71) (11)

Corporate tax expense - (8) (59) - (37) (31) - 21 4

Underlying profit after tax - 17 129 - 116 106 - (50) (7)

Investment experience after

tax- 9 9 - 9 9 - 51 19

Cash net profit after tax - 26 138 - 125 115 - 1 12

Half Year Ended Half Year Ended

Continuing operations Discontinued operations

Colonial First State CFS Global Life

& Aligned Advice (1) Asset Management Insurance Business

31 Dec 19 30 Jun 19 31 Dec 18

$M $M $M


Insurance income - 2 72

Total operating income - 509 552




Underlying profit after tax - 66 99



Life Insurance Business (2) - 1 12

CFS Global Asset Management - 125 115


Half Year Ended

Attachment A


 

New Zealand

(1) Other banking income disclosed in AUD includes realised gains or losses associated with the hedging of New Zealand operations earnings. (2) Other includes ASB funding entities and elimination entries between New Zealand segment entities.

31 Dec 19 30 Jun 19 31 Dec 18

New Zealand (A$M) A$M A$M A$M


Other banking income (1) - 206 236









Half Year Ended

31 Dec 19 30 Jun 19 31 Dec 18

New Zealand (NZ$M) NZ$M NZ$M NZ$M











Represented by:

ASB - 589 614

Other (2) - (36) (35)


Half Year Ended

Attachment A


 

New Zealand

(1) Key financial metrics are calculated in New Zealand dollar terms.

Key Financial Metrics (continuing operations) (1)31 Dec 19 30 Jun 19 31 Dec 18

Performance indicator


Half Year Ended

31 Dec 19 30 Jun 19 31 Dec 18

ASB (NZ$M) NZ$M NZ$M NZ$M











Half Year Ended

Attachment A


 

New Zealand

(1) Key financial metrics are calculated in New Zealand dollar terms unless otherwise stated.

(2) Risk weighted assets (NZ$M) calculated in accordance with RBNZ requirements.

(3) Risk weighted assets (A$M) calculated in accordance with APRA requirements.

31 Dec 19 30 Jun 19 31 Dec 18

ASB Balance Sheet (NZ$M) NZ$M NZ$M NZ$M

Home loans - 57,194 55,338

Business lending - 17,342 16,735

Rural lending 11,320 11,231

Other interest earning assets - 2,198 2,198

Total lending interest earning assets - 88,054 85,502

Non-lending interest earning assets - 8,719 9,516

Other assets - 1,643 1,940

Total assets - 98,416 96,958

Interest bearing deposits - 59,016 58,309

Debt issues - 20,971 20,100

Other interest bearing liabilities - 2,283 1,815

Total interest bearing liabilities - 82,270 80,224

Non-interest bearing deposits - 5,530 5,377



As at

ASB Key Financial Metrics (1)31 Dec 19 30 Jun 19 31 Dec 18





Impairment expense annualised as a % of

average GLAAs (%)- 0. 15 0. 11

Other information

Average interest earning assets (NZ$M) - 96,385 94,262

Risk w eighted assets (NZ$M) (2) - 56,073 54,867

Risk w eighted assets (A$M) (3) - 51,186 50,147

FUA- average (NZ$M) - 15,192 15,007

FUA- spot (NZ$M) - 15,876 14,485

AUM - average (NZ$M) - 15,924 15,001

AUM - spot (NZ$M) - 16,787 14,963

90+ days home loan arrears (%) - 0. 13 0. 11

90+ days consumer f inance arrears (%) - 0. 59 0. 33


Half Year Ended

Attachment A


 

International Financial Services

(1) IFS does not include the Business and Private Banking, Institutional Banking and Markets and CFSGAM businesses in Asia.

(2) Discontinued operations include BoComm Life, TymeDigital SA and PTCL.

(3) Risk weighted assets include discontinued operations.

31 Dec 19 30 Jun 19 31 Dec 18

International Financial Services (1) $M $M $M



Total banking income - 216 241





Cash net profit after tax from continuing operations - 120 130

Cash net (loss)/profit after tax from discontinued operations (2) - 15 (30)


Key Financial Metrics (continuing operations) 31 Dec 19 30 Jun 19 31 Dec 18




Impairment expense annualised as a % of average

GLAAs (%)- 2. 26 1. 53

Other information

Risk w eighted assets ($M) (3) - 3,660 4,001


Half Year Ended

Half Year Ended

Attachment A


 

Corporate Centre

31 Dec 19 30 Jun 19 31 Dec 18

Corporate Centre (including eliminations) $M $M $M



Total banking income - 175 126

Funds management income - (11) (5)

Insurance income - (2) -

Total operating income - 162 121


Loan impairment expense - 1 -

Net loss before tax - (805) (488)

Corporate tax expense - 213 153

Non-controlling interests - (6) (6)

Underlying loss after tax - (598) (341)

Investment experience after tax - (21) (13)

Cash net loss after tax from continuing operations - (619) (354)

Cash net loss after tax from discontinued operations - (19) (5)

Cash net loss after tax - (638) (359)

Half Year Ended


 

Financial Reporting By Segments

(1) Information has been presented on a continuing operations basis. (2) Investment experience is presented on a pre-tax basis. (3) These amounts exclude non-cash items, including $12 million unrealised gains relating to hedging and IFRS volatility, a $29 million benefit from the release of provisions for transaction and separation costs associated with the disposal of CFSGAM, a $22

million gain net of transaction and separation costs associated with the disposal of Sovereign, and a $75 million gain on disposal and closure of other businesses, partly offset by $44 million transaction and separation costs associated with the disposal of CommInsure Life, $33 million transaction and separation costs associated with the disposal of Count Financial, and $36 million demerger costs for NewCo, and a $9 million gain due to treasury shares valuation adjustment.

Retail Business Institutional IFS and

Banking and Private Banking and Wealth New Corporate

Services Banking Markets Management Zealand Centre Total

$M $M $M $M $M $M $M

Net interest income 4,346 2,795 667 - 969 209 8,986

Other banking income:

Commissions 657 398 80 - 149 29 1,313

Lending fees 76 211 166 - 31 1 485

Trading and other income 63 149 244 - 26 152 634

Total other banking income 796 758 490 - 206 182 2,432

Total banking income 5,142 3,553 1,157 - 1,175 391 11,418

Funds management income 25 - - 421 67 (11) 502

Insurance income 81 - - - - (2) 79

Total operating income 5,248 3,553 1,157 421 1,242 378 11,999

Investment experience (2) 11 - - 11 - (21) 1

Total income 5,259 3,553 1,157 432 1,242 357 12,000

Operating expenses (2,197) (1,367) (515) (396) (472) (1,033) (5,980)

Loan impairment expense (367) (203) 21 - (60) (15) (624)

Net profit before tax 2,695 1,983 663 36 710 (691) 5,396

Corporate tax (expense)/benefit (822) (597) (148) (10) (195) 198 (1,574)

Non-controlling interests - - - - - (6) (6)

Net profit after tax from continuing operations - "cash basis" 1,873 1,386 515 26 515 (499) 3,816

Net profit after tax from discontinued operations - - - 126 - (4) 122

Net profit after tax - "cash basis" (3) 1,873 1,386 515 152 515 (503) 3,938

Gain/(loss) on acquisition, disposal, closure and demerger of businesses - - - (84) 66 31 13

Hedging and IFRS volatility - - - - 46 (34) 12

Other non-cash items - - - 9 - - 9

Net profit after tax - "statutory basis" 1,873 1,386 515 77 627 (506) 3,972

Additional information

Amortisation and depreciation (104) (81) (19) (10) (42) (228) (484)

Balance Sheet

Total assets 390,583 197,047 148,027 21,093 94,320 125,432 976,502

Total liabilities 247,671 159,057 158,579 24,342 88,466 228,738 906,853

Half Year Ended 30 June 2019 (1)


 

Financial Reporting By Segments

(1) Information has been presented on a continuing operations basis. (2) Investment experience is presented on a pre-tax basis. (3) These amounts exclude non-cash items, including $91 million unrealised losses relating to hedging and IFRS volatility, $100 million transaction and separation costs associated with the disposal of CFSGAM, $38 million transaction and separation costs

associated with the disposal of CommInsure Life, $22 million transaction and separation costs associated with the disposal of TymeDigital SA, $18 million demerger costs for NewCo, and a $9 million loss on disposal and closure of other businesses, partly offset by a $113 million gain net of transaction and separation costs associated with the disposal of Sovereign, $1 million expense in relation to Bankwest non-cash items, and a $3 million loss due to treasury shares value adjustment.

Retail Business Institutional IFS and

Banking and Private Banking and Wealth New Corporate

Services Banking Markets Management Zealand Centre Total

$M $M $M $M $M $M $M

Net interest income 4,402 2,860 746 - 940 186 9,134

Other banking income:

Commissions 700 415 96 - 153 (4) 1,360

Lending fees 92 207 179 - 29 - 507

Trading and other income 84 144 302 - 54 185 769

Other banking income 876 766 577 - 236 181 2,636

Total banking income 5,278 3,626 1,323 - 1,176 367 11,770

Funds management income 71 - - 441 63 (5) 570

Insurance income 68 - - - - - 68

Total operating income 5,417 3,626 1,323 441 1,239 362 12,408

Investment experience (2) 9 - - 13 - (19) 3

Total income 5,426 3,626 1,323 454 1,239 343 12,411

Operating expenses (2,166) (1,237) (499) (253) (440) (694) (5,289)

Loan impairment expense (305) (181) (38) - (42) (11) (577)

Net profit before tax 2,955 2,208 786 201 757 (362) 6,545

Corporate tax (expense)/benefit (884) (663) (184) (63) (213) 144 (1,863)

Non-controlling interests - - - - - (6) (6)

Net profit after tax from continuing operations - "cash basis" 2,071 1,545 602 138 544 (224) 4,676

Net profit after tax from discontinued operations - - - 127 - (35) 92

Net profit after tax - "cash basis" (3) 2,071 1,545 602 265 544 (259) 4,768

Gain/(loss) on acquisition, disposal, closure and demerger of businesses - - 13 (156) 113 (44) (74)

Hedging and IFRS volatility - - - - (94) 3 (91)

Other non-cash items (1) - - (3) - - (4)

Net profit after tax - "statutory basis" 2,070 1,545 615 106 563 (300) 4,599

Additional information

Amortisation and depreciation (97) (81) (19) (10) (38) (245) (490)

Balance Sheet

Total assets 382,772 194,755 160,364 19,442 92,434 130,663 980,430

Total liabilities 245,498 160,616 158,113 22,757 85,890 238,978 911,852

Half Year Ended 31 December 2018 (1)


 

Profit Reconciliation

(1) Continuing operations net profit after tax includes: $36 million demerger costs for NewCo, $33 million impairment loss and transaction costs associated with the disposal of Count Financial, partly offset by a $26 million net gain on disposals of other businesses. Discontinued operations net profit after tax includes: a $29 million benefit from the release of provisions for transaction and separation costs associated with the disposal of CFSGAM, a $22 million gain net of transaction and separation costs associated with the disposal of Sovereign, and a $49 million net gain on disposals of other businesses, partly offset by $44 million transaction and separation costs associated with the disposal of CommInsure Life.

(2) Bankwest merger related amortisation was fully amortised in the half year ended 31 December 2018. (3) Interest income includes total effective interest income and other interest income. (4) Statutory net profit after income tax from discontinued operations is presented net of non-controlling interests.

Gain/(Loss) on Treasury Net profit

Net profit disposal and Hedging Bankw est shares after tax

after tax acquisition of and IFRS non-cash valuation Investment "statutory

"cash basis" controlled entities (1) volatility items (2) adjustment experience basis"

Profit Reconciliation $M $M $M $M $M $M $M

Group

Interest income (3) 17,073 - - - - - 17,073

Interest expense (8,087) - - - - - (8,087)

Net interest income 8,986 - - - - - 8,986

Other banking income 2,432 16 15 - - - 2,463

Total banking income 11,418 16 15 - - - 11,449

Funds management income 502 - - - - - 502

Insurance income 79 - - - - 1 80

Total operating income 11,999 16 15 - - 1 12,031

Investment experience 1 - - - - (1) -

Total income 12,000 16 15 - - - 12,031

Operating expenses (5,980) (76) - - - - (6,056)

Loan impairment expense (624) - - - - - (624)

Net profit before tax 5,396 (60) 15 - - - 5,351

Corporate tax (expense)/benefit (1,574) 17 (3) - - - (1,560)

Non-controlling interests (6) - - - - - (6)

Net profit after income tax from continuing operations 3,816 (43) 12 - - - 3,785

Net profit after income tax from discontinued operations (4) 122 56 - - 9 - 187

Net profit after income tax 3,938 13 12 - 9 - 3,972



 

Profit Reconciliation

(1) Continuing operations net profit after tax includes: $18 million demerger costs for NewCo, partly offset by a $9 million gain net of transaction and separation costs associated with the disposal of other businesses. Discontinued operations net profit after tax includes: $100 million transaction and separation costs associated with the disposal of CFSGAM, $38 million transaction and separation costs associated with the disposal of CommInsure Life, $22 million transaction and separation costs associated with the disposal of TymeDigital SA and $18 million transaction and separation costs associated with the disposal of other businesses, partly offset by a $113 million gain net of transaction and separation costs associated with the disposal of Sovereign.

(2) Includes merger related amortisation through operating expenses of $2 million, and an income tax benefit of $1 million. (3) Interest income includes total effective interest income and other interest income. (4) Statutory net profit after income tax from discontinued operations is presented net of non-controlling interests.

Gain/(Loss) on Treasury Net profit

Net profit disposal and Hedging Bankw est shares after tax

after tax acquisition of and IFRS non-cash valuation Investment "statutory

"cash basis" controlled entities (1) volatility items (2) adjustment experience basis"

Profit Reconciliation $M $M $M $M $M $M $M

Group

Interest income (3) 17,515 - - - - - 17,515

Interest expense (8,381) - - - - - (8,381)

Net interest income 9,134 - - - - - 9,134

Other banking income 2,636 26 (131) - - - 2,531

Total banking income 11,770 26 (131) - - - 11,665

Funds management income 570 - - - - 1 571

Insurance income 68 - - - - 2 70

Total operating income 12,408 26 (131) - - 3 12,306

Investment experience 3 - - - - (3) -

Total income 12,411 26 (131) - - - 12,306

Operating expenses (5,289) (26) - (2) - - (5,317)

Loan impairment expense (577) - - - - - (577)

Net profit before tax 6,545 - (131) (2) - - 6,412

Corporate tax (expense)/benefit (1,863) (9) 40 1 - - (1,831)

Non-controlling interests (6) - - - - - (6)

Net profit after income tax from continuing operations 4,676 (9) (91) (1) - - 4,575

Net profit after income tax from discontinued operations (4) 92 (65) - - (3) - 24

Net profit after income tax 4,768 (74) (91) (1) (3) - 4,599


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